Tulare County: Steady pipeline despite changes of heart

Despite concerns about interest rates, development continues in Tulare County. Some organizations might be in the enviable position of the City of Visalia, which has up to $110 million to spend on a new civic center, with renderings seen here. This is, of course, unless there’s a recession next year.

Photo contributed Higher interest rates have caused many business owners to hit the pause button. Borrowing costs have doubled in the last two years, and equipment purchase and expansion plans have been postponed. In Tulare County, small business owners are doing the hard math on whether to expand their offices or buy more equipment.

The need to leverage capital for growth is just as important for large corporations. That reality was driven home this year after the anticipated Great Wolf Lodge was not built in Visalia. In February of this year, it was confirmed the Chicago-based developer decided not to move forward.

The company said its priority was to invest in existing resorts and focus on opening resorts already under construction. “There are certainly some exciting and notable businesses growing here in Visalia. So the news isn’t all bad.

Great Wolf Lodge talked about the change of business conditions and cited the cost of both construction and interest rates as reasons why they put their project on hold,” said Gail Zurek, president and CEO of the Visalia Chamber of Commerce. Going into 2024, businesses in Tulare County are trying to bounce back from the effects of inflation and continue to grow. Something consumers might understand, Zurek said, is that when a business owner makes an investment, say for equipment, it may take several months to a year or more to start seeing a return on investment.

“Whatever they’re taking that loan out for is something that we would often see a couple of months, if not a year from now, or more,” said Zurek. Tulare County, and particularly Visalia, continue to shine when it comes to comes to commercial development — even if residential development doesn’t quite hold the same pace. “While 2023 has certainly been slower regarding new building permit activity for single and multifamily residential, commercial permit activity has continued steadily.

Year-to-date (through Oct), we are up 23% in new commercial permits and 8% in commercial additions/alterations permits from 2022,” said Devon Jones, economic development manager for the City of Visalia. Considerable residential development activity is already underway from a very active 2022. Also, with the recent adoption of an ag mitigation program, numerous annexations are back underway that will yield development activity in the future.

In terms of new commercial building permit activity, 2023 is the 5th straight year to have over one million square feet of new commercial permits issued, due mainly to growth in the industrial park, said Jones. Next year, in the industrial park, CapRock Partners’ 3rd phase, Central Point III, will include three additional industrial facilities with exact sizes to be determined. Parcel one is approximately 18 acres, parcel two at 28 acres, and parcel three at nearly 29 acres.

Many local companies are also expanding, including Visalia Ceramic Tile, Sorma, Serpa Packaging Solutions, Edeniq, and Nammour, with many others underway. The City of Visalia has also invested in workforce development for the industrial park, supporting a $75,000 service contract with the College of the Sequoias’ Training Resource Center (TRC) to help them locate a satellite training center in the industrial park in partnership with local food packaging manufacturer, Sorma USA. Sequoia Mall redevelopment is in full swing, with Sprouts, Nordstrom Rack, and Barnes & Noble in the first phase and Carter’s, Osh Kosh, and Skechers in the next stage.

More is expected as the site continues to be redeveloped. Other brands will soon be coming to Visalia, including Carmax, Fahrney’s My Car Park, Aldi, Apricot Lane, Farmer Boys, Les Schwab, Buckle at the Visalia Mall, and more recently, Cinnaholic, Tractor Supply, Handel’s Ice Cream, and a new Hilton Garden Inn near Highway 198 and Plaza Drive. Many local brands are growing, including Quesadilla Gorilla, Scoops Ice Cream, and Bombshell Beans, taking space at the upcoming ‘Mix’ development on Main Street.

House of Juju is now open and microbrewery activity continues with Long Shot Brewery moving to East Main Street, Salty Walrus going on Valley Oaks Drive, and Simply Brewing working on their new location. Downtown Visalia will also be getting an indoor golf simulator entertainment center with a restaurant and bar in the upcoming Mulligans, a redevelopment of the former Main Street Theater. Several medical projects are progressing, including the VA Clinic entering the former Gallagher Insurance building and the Family Healthcare Network’s expansion in downtown Visalia, including new administrative facilities and a new Program of All-Inclusive Care for the Elderly (PACE) adult care facility just south of the VA Clinic location.

Additionally, Kaweah Health has opened a new clinic in the industrial park to service the northwest Visalia/Goshen area. The industrial park is working on a child and adolescent Crisis Stabilization Unit in the former Sequoia Boy Scouts office to provide crisis intervention services for youth 24/7. Lastly, it’s expected that several additional hotels in the market with plans submitted for the proposed Home 2 Suites near the industrial park, a new TownePlace Suites by Marriott near Adventure Park, and a Marriott hotel proposed in the Oaks Marketplace shopping center at the southeast corner of Visalia Parkway and Mooney.

Higher interest rates have caused many business owners to hit From Hanford to Lemoore, business leaders and city officials are Despite the negative impacts from the closure of Madera Community Will there or won’t there be a recession? That’s the.